Got a “Notice of Revocation of City License(s)” in the mail? The City of Philadelphia has resumed its Commercial Activity License (CAL) Revocation program after a long pause due to the pandemic. As a result, we recently mailed out warning letters to businesses with unresolved tax debts. You may have received one if you have outstanding business taxes or failed to file missing returns.
Ignoring our letters or your tax debts could affect your ability to conduct business in Philadelphia and limit your access to some payment agreement options.
How the program works
The Department of Revenue sends out two warning letters; one is mailed out, and the other is hand-delivered. The first revocation notice provides:
- Details of a business unfiled and unpaid taxes, and
- A 10-day period within which you must pay off your tax debts or enter into a payment agreement.
This letter also provides the name and contact details of a case worker with whom you should work directly to resolve your tax debts.
If you do not respond within the 10-day period, the Department of Revenue hand-delivers a second letter notifying you that your commercial activity license will be revoked in two days. This means that you will not be allowed to conduct business in Philadelphia two days after receiving this second notice.
If you continue to operate your business after your license has been revoked, the City may fine you $300 per day.
Here’s how to prevent revocation
Pay your taxes – this is the best way to keep your business open. Make sure to pay your tax bills in full—and on time. You can find all Philadelphia tax types, their rates, and associated due dates or filing requirements on the Department of Revenue’s website.
The easiest way to file and pay all City taxes is through the Philadelphia Tax Center. You can pay taxes on this website without creating a username and password. Just go to tax-services.phila.gov, select “Make a payment” under the “Payments” panel, and follow the onscreen prompts to submit your payment. Paying with eCheck is always free of processing charges.
File on time – filing on time keeps your business in good standing with the City. Log into your Philadelphia Tax Center profile and select the “Action center” tab to view a list of your missing returns and file your taxes. The site lets you view missing returns from prior years, going as far back as 2015.
Watch this video for helpful tips and how to get started if using the Philadelphia Tax Center for the first time. We’ve also updated our online Philadelphia Tax Center guide to provide answers to the most common questions.
If you cannot pay
It is always best to contact the Department of Revenue if you are behind on your business taxes or experiencing a hardship resolving your tax debts. We have several payment agreement options with flexible terms to help you get back on track.
Keep in mind that resolving your tax debts or entering a payment agreement prevents revocation and keeps your business open. If you have questions or need help, please call (215) 686-6705.
Photo credit: T. Farnsworth
